Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
/ Z* l% ?; @  R! Sexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
0 U" _- B' t' Z+ r3 P: x: |these oil producer will go bankrupt or out of the business even if
4 b1 ]( ~9 K2 h6 i5 P) ]# S9 lcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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" [0 Y) n9 p( sRecently OPEC reduced crude oil production twice over just a few
- t! _* d) J0 |, A8 }/ i1 @* umonths. There are three wars going on in Gaza, Iraq and Afghandistan.
- o0 Z. s/ _3 I6 c& BA year ago these things would have spiked the price of crude oil by at
( F- e3 ~+ G% yleast $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
. \* ?: g2 d4 e+ C, cof so much news. These reasons are:


3 S2 q- i! A) y0 B1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
* x  |: a: K& ?; @% Z6 @: XArabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
5 K' D, e7 O3 {This is the largest find in North America.

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# T4 j: o9 `$ G+ N( ^8 Y+ }3. New methods of injecting CO2 and surfactants into oil wells is
% m9 f! B) C% D6 ~& }# B; I; Lbeing used to double their output.

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& X6 `" k; u( Q/ l$ }6 W4. Production of bio-fuels is beginning to reach critical mass. Bio
. }1 U* K" v* N9 ^fuel is being produced from many plants and algae. The production
6 c( u7 o& d4 Rpotential per acre in some cases is astounding. Many countries are
7 t, _! M# l9 J$ A+ wracing to produce bio fuels.
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5 q2 `+ ]/ N& ^4 ~7 g5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
8 D7 R8 I: C9 rto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
, L5 I% \8 C& G$ q* `- a9 B/ A, Qconstruction around the world at this time. Several hundred more are
6 c9 {6 X& f1 n  A  n- b. dexpected to be built in the future. Much of the energy they produce
will replace oil.


! E4 v. u" o/ J( ^7. Every company in any form of transportaion business is replacing
. `  n7 }, ?& k% j, W' folder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
* w% a! \4 [6 I* {! mare experiencing 20% to 25% better fuel econony with the new
  @) ^! u% z/ `equipment.
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* h# A; |8 e. A8 X1 \* QAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

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! D, _- ~  [7 r' b* D' l8. Cities and counties throughout the US are selling the rights to
6 G% w) P# z1 |  J2 |capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.


% q1 V# U0 y% k( S% t3 i9. Coal is being transformed into a clean burning liquid fuel. The CO2
) H9 z- N6 a; b; F: Dproduced as a byproduct is sold to oil companies for injection into
5 a3 }. f! a: h6 _; r# c. X7 d9 loil wells.

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+ [6 r- o# q* J1 g! C10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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  B- K& Y8 `" Z% u5 J9 ~# PEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
) ~& ~! `; Q  Tchanging. The important thing is that OPEC no longer has the ability
/ n) x3 V& Z# F# E. _$ mto control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
1 {" d3 g. K. x; f4 ivalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
6 q! n+ Z8 P5 w7 R) B- U/ ?2009 ... FYI-Only